The Malta Independent 19 April 2024, Friday
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The return of the state

Gejtu Vella Tuesday, 29 July 2014, 08:00 Last update: about 11 years ago

 

 

In the late 80s, the Nationalist government brought in a significant economic policy change. In a nutshell, it was based on reducing the role of the state and opened wide the doors for private investors and other economic players to venture in the economy

The role of the state was gradually withdrawn from various economic activities. The role of Government is to provide the necessary infrastructure for business activity to mushroom and grow.

Back then a vast privatisation programme was set into motion. It was a difficult process, and it was like surgery, painful at times but necessary. To my mind with the exception of one or two, all privatised national companies become more efficient, transported in new technologies, introduced new work practices and invested heavily to be able to combat cut throat local and international competition. Any partisan political motivated interference came to an end.

During that period trade unions were concerned, some sought guarantees for workers others were more interested in keeping the status quo. National companies were referred to as state jewels by left wingers. On many occasions left-wingers made their way to the streets to satisfy their politically motivated agenda and let-off steam. Industrial strife and threats of industrial actions were common. During industrial strikes at times the police force had to intervene to make their presence felt.

In a world where people so often look at things in black and white, it is sometimes worth being reminded that if not all, many issues are made up of varying shades of grey. Admittedly, the one I will touch upon, Enemalta’s privatisation goes much more towards the darker side.

The partial, one-third privatisation of Enemalta is expected to bring many changes to the consumers, industry and not least to Enemalta workers. China will be taking over Malta’s energy generation.

The water and electricity tariffs were a hot potato for many years. On many occasions, the cost of the generation and distribution of water and electricity debate was unsavoury. Water and electricity tariffs became a national controversy and an opportunity for many on different sides of the political spectrum to throw at each other what could stick. Gaining political mileage became more important than searching for objective solutions. It seems that well researched tailor-made solutions for our present and future exigencies for our economy became redundant.

It is worth noting that perceptions and misconceptions played a significant part in the setting of minds and hearts on the water and electricity tariffs.

Lately, against all odds onethird of Enemalta is privatised by left-wingers. There has always been a broad consensus that power generation should not be privatised. This privatisation is by far not an administrative exercise in which essentially one may agree with or beg to differ. This should be an eye opener and a warning.

It is rather strange for any Government to keep mum in the face of repeated requests from various quarters, not least from the party in opposition in Parliament to disclose the details of the agreement signed with Electrogas responsible for the building of the new gas-fired power plant. It is equally worrying to keep a memorandum of understanding signed with Shangai Electric, which is set to acquire a minority stake in Enemalta a state secret.

I feel rather comfortable to imply that not all that glitters is gold. In this privatisation process not much has been disclosed. Governments, if anything would be more than willing to show-off their achievements. In this process of privatisation, the level of transparency was zilch.

It is regretted that left-wingers adopted a process which is far from transparent. The only details made available are that a hand-picked Chinese and Azerbaijani, government owned companies formed a consortium with leading local entrepreneurs and were awarded the contract for the supply of power generation. They have security of the market for a number of years but as yet consumers are left in the dark.

Before, you blow your top in the skies I think it is time to take a deep breath and count to ten before you make your next move. No doubt switchers will bite their lip and shake their head in disbelief. Understandably, like the rest of us there isn’t much we can do.

To add insult to injury now we learn that the electorate will not be allowed to express his opinion at the Local Council’s elections next year and the fo0llowing years as these elections are to be postponed to coincide with the 2019 European Parliament elections. This will prevent also sixteen-year olds from actively taking part in local council’s elections. You may like to call this a Machiavellian act or a threat to democracy. Both fit in nicely.

Last Friday, Prime Minister Joseph Muscat confirmed in Parliament that a Maltese man in his 40s was abducted in Libya on the 17th on his way to work and was being held by rebels, however, notwithstanding the seriousness of the issue this was not disclosed to the general public. This was kept a secret until a section of the media revealed the news.

Hope China is not calling the shots already.

 
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